Question
a.
By stabilizing the insurer's annual aggregate claims experience
b.
By reducing the concentration of risks in any one class of business or geographical area
c.
By minimizing the risk of suffering a greater liability than justified by the financial resources in the event of a catastrophe
d.
By ceding a portion of the risk to the reinsurer and ensuring that it is not placed at a serious disadvantage compared to its competitors
Posted under IC85 Reinsurance Management
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. How can reinsurance be used to allow an insurer to accept risks beyond its normal retention?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. How can reinsurance minimize the risk of suffering a greater liability than justified by the financial resources in the event of a catastrophe?
View solution
Q. What is the technical objective of a reinsurance program?
View solution
Q. What is the objective of a reinsurance program relating to the business efforts of the insurer?
View solution
Q. Why is it important to keep the gross account profitable in a reinsurance program?
View solution
Q. What is the primary objective of reinsurance?
View solution
Q. How can the reinsurance program aid in preserving the business efforts of the insurer?
View solution
Q. What is the need to keep the gross account profitable in the reinsurance program?
View solution
Q. How can reinsurance be used to finance growth for a newly formed insurance company?
View solution
Q. What is the ultimate objective of the reinsurance program?
View solution
Q. What is the purpose of obtaining participations in the portfolio of risks of other insurers / reinsurers?
View solution
Q. What is the importance of a good relationship between an insurer and its reinsurers?
View solution
Q. What is the purpose of reinsurance?
View solution
Q. What is the importance of addressing the underlying problem of inadequate rates of direct business?
View solution
Q. The primary objective of reinsurance is that it should reduce the insurer’s probability of ‘ruin’ at a price acceptable to it . In what context is the word ‘ruin’ used by an actuary?
View solution
Q. What is the aim of Gross to Net evaluations?
View solution
Q. In the context of commission earned on ceded business, what decision has to be made?
View solution
Q. What is the importance of the gross experience of a class concerned?
View solution
Q. What is a good index for measuring the effect of the program on retentions?
View solution
Q. What is the critical component in determining a large proportion of the balance being generated?
View solution
Q. What factors determine the insurer's capacity to pursue a policy actively?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!
